U.S. patent application number 11/894859 was filed with the patent office on 2008-03-06 for method and system for secure transactions.
Invention is credited to Augustine Fou.
Application Number | 20080059366 11/894859 |
Document ID | / |
Family ID | 39153156 |
Filed Date | 2008-03-06 |
United States Patent
Application |
20080059366 |
Kind Code |
A1 |
Fou; Augustine |
March 6, 2008 |
Method and system for secure transactions
Abstract
As an alternative to paper check processing, the methods and
systems now introduced include processing transactions from bank
account to bank account while providing the parties involved with
greater privacy and protections against identity theft, check
fraud, and other types of potential fraud. Each party is provided
with a unique code that can be entered, for example, at a website,
in place of their actual account details. The website uses stored
account identification details to process a payment from one party
to the other.
Inventors: |
Fou; Augustine; (New york,
NY) |
Correspondence
Address: |
CHARLES A. RATTNER
12 HOMEWOOD LANE
DARRIEN
CT
06820-6109
US
|
Family ID: |
39153156 |
Appl. No.: |
11/894859 |
Filed: |
August 22, 2007 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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10653391 |
Sep 2, 2003 |
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11894859 |
Aug 22, 2007 |
|
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60839238 |
Aug 22, 2006 |
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Current U.S.
Class: |
705/39 |
Current CPC
Class: |
G06Q 20/385 20130101;
G06Q 20/14 20130101; G06Q 20/10 20130101 |
Class at
Publication: |
705/039 |
International
Class: |
G06Q 40/00 20060101
G06Q040/00 |
Claims
1. A method for initiating a transaction, comprising: registering a
payer; providing a unique customer identifier for the payer;
receiving, from the payer, an initiation of a payment to a payee,
including a unique customer identifier of the payee and a
transaction amount; and providing a unique transaction identifier
for the payment to the payer for communication to the payee.
2. The method of claim 1, further comprising: receiving the unique
transaction identifier from the payee; and transferring funds
corresponding to the payment from the bank account of the payer to
a bank account of the payee.
3. The method of claim 1, wherein the unique customer identifier of
the payer comprises a universally unique identifier.
4. The method of claim 1, wherein the unique customer identifier of
the payee comprises a universally unique identifier.
5. The method of claim 1, wherein the unique transaction identifier
comprises a universally unique identifier.
6. The method of claim 1, wherein the unique customer identifier
comprises an alphanumeric code of at least eight characters.
7. The method of claim 1, wherein the unique transaction identifier
comprises an alphanumeric code of at least twelve characters.
8. The method of claim 1, wherein the unique customer identifier of
the payer is generated by encoding registration information of the
payer.
9. The method of claim 1, wherein the unique customer identifier of
the payee is generated by encoding registration information of the
payee.
10. The method of claim 1, wherein the unique transaction
identifier is generated by encoding corresponding transaction
information.
11. The method of claim 1, wherein said registering comprises
receiving, from the payer: a name, an address, and the bank account
of the payer.
12. The method of claim 1, further comprising receiving from the
payee, an initiation of a deposit, including a unique transaction
identifier.
13. The method of claim 12, further comprising receiving from the
payee, an initiation of a deposit, including a unique transaction
identifier and transaction amount.
14. A method for initiating a transaction, comprising: registering
a payer; providing a unique customer identifier for the payer;
wherein the customer identifier can only be used by a third party
to make a deposit to a bank account of the payer and the customer
identifier does not include an actual bank account number of the
payer in human-readable format; receiving, from the payer, an
initiation of a payment to a payee, including a unique customer
identifier of the payee and a transaction amount; and providing a
unique transaction identifier for the payment to the payer for
communication to the payee.
15. A method for initiating a transaction, comprising: registering
a payer; providing a unique customer identifier for the payer,
wherein the customer identifier can only be used by a third party
to make a deposit to a bank account of the payer and the customer
identifier does not include an actual bank account number of the
payer in human-readable format; receiving, from the payer, an
initiation of a payment to a payee, including a unique customer
identifier of the payee and a transaction amount; and providing a
unique transaction identifier for the payment to the payer for
communication to the payee; and associating the unique transaction
identifier with the unique customer identifier of the payee, so
that only the payee may use the unique transaction identifier to
accomplish a deposit of the payment.
16. The method of claim 15, further comprising: receiving, from the
payee, an initiation of a deposit, including a unique transaction
identifier.
Description
CROSS-REFERENCE TO RELATED APPLICATIONS
[0001] This application claims priority under 35 U.S.C. .sctn.119
to U.S. Provisional Patent Application Ser. No. 60/839,238 entitled
"METHOD AND SYSTEM FOR TRANSACTIONS" filed in the name of Augustine
Fou on Aug. 22, 2006, the entirety of which is herein incorporated
by reference. This application further claims priority under 35
U.S.C. .sctn.120 as a continuation-in-part of co-pending U.S.
patent application Ser. No. 10/653,391 entitled "METHOD FOR
FACILITATING COMMERCIAL PROGRAMS INVOLVING CONSUMER PRODUCTS USING
UNIVERSALLY UNIQUE ITEM IDENTIFIERS" filed in the name of Augustine
Fou on Sep. 2, 2003, the entirety of which is herein incorporated
by reference.
TECHNICAL FIELD
[0002] This disclosure relates generally to data processing for
financial transactions, and more particularly, to funds transfers
such as bill payments.
BACKGROUND OF THE DISCLOSURE
[0003] Small businesses represent 99.7% of the number of businesses
in the United States, an estimated $4.7 trillion in total spending,
as well as one-third of all expenditures by businesses (source:
Visa), adding 75% of net new jobs to the economy (source: Small
Business Administration). The largest share of small business
expenditures, 34 percent or approximately $1.6 trillion, is
comprised of payments for "core business services," such as legal,
accounting, insurance and shipping and mailing expenditures.
[0004] However, credit cards account for only 3% of all small
business spending overall, with the remaining 97% being transacted
by cash and check. Divisions of companies, like OPEN from AMERICAN
EXPRESS, or companies focused entirely on small business credit
cards, such as ADVANTA, have seen incredible growth over the last
several years in issuing small business cards relative to consumer
cards, the market for which is massively oversaturated. Despite
this recent growth, small business issuers are finding it
increasingly difficult to shift spending away from cash and check,
not to mention the increasing competition from other banks entering
this lucrative market with small business cards of their own. To
maintain the torrid growth rates, issuers are aggressively
increasing spending in marketing and reward programs to attract new
customers and increase transaction volume. The costs of these
activities are ultimately passed on to card-members in the form of
increased fees, such as annual fees, penalties, transaction fees,
finance charges, and the like. This most acutely affects small
businesses, especially those whose margins and cash flow are
tight.
[0005] There is also an intense recent public awareness of identity
theft, credit card and check fraud, online scams, and computer
attacks such as viruses, phishing, and pharming. Many high profile
news items, like the recent reports of 40 million credit card
numbers being stolen, are causing consumers and small businesses
alike to look for ways to protect themselves. Companies that
provide services like identity theft protection and credit bureau
monitoring have seen a corresponding boom. However, the risk of
fraud remains high with one of the most common transaction methods:
paper checks. Checking account numbers and bank routing numbers
plus complete mailing addresses are printed in human-readable
format on every check. This poses a gaping security loophole,
especially in light of recent reports of rings of thieves whose
modus operandi is stealing letters with checks inside from
mailboxes or directly from postal facilities.
[0006] Accordingly, there is a need for a system for accomplishing
financial transactions, such as those normally conducted by paper
check, which is easily implemented in the commercial marketplace
and readily useful by payer and payees of financial
transactions.
SUMMARY OF THE DISCLOSURE
[0007] The methods and systems for accomplishing a financial
transaction now introduced include: registering a payer and a payee
with a payment processing service. A unique customer identifier is
generated for each payer and payee using the system. Such customer
identifiers can only be used by a third party to make a deposit to
the bank account corresponding to the customer identifier, and the
customer identifier itself does not include an actual bank account
number of the payer in human-readable format. In processing a
transaction, a request to initiate a payment to a payee is received
from a payer. The request includes a unique customer identifier of
the payee and a transaction amount. In response, a unique
transaction identifier for the payment is provided to the payer for
subsequent communication to the payee. The service provider
associates the unique transaction identifier with the unique
customer identifier of the payee, so that only the payee may use
the unique transaction identifier to accomplish a deposit of the
payment.
BRIEF DESCRIPTION OF THE DRAWINGS
[0008] Further aspects of the present disclosure will be more
readily appreciated upon review of the detailed description of its
various embodiments, described below, when taken in conjunction
with the accompanying drawings, of which:
[0009] FIG. 1 is a flowchart depicting an exemplary transaction
process performed by a payer, according to the present
disclosure;
[0010] FIG. 2 is a flowchart depicting an exemplary transaction
process performed by a payee, according to the present
disclosure;
[0011] FIG. 3 is an exemplary screen for registering a customer for
the transaction processes of FIGS. 1 and 2;
[0012] FIG. 4 is an exemplary screen for initiating a payment in
accordance with the transaction process of FIG. 1; and
[0013] FIG. 5 is an exemplary screen for making a deposit in
accordance with the transaction process of FIG. 2.
DETAILED DESCRIPTION OF THE DISCLOSURE
[0014] The methods and systems for accomplishing financial payments
now introduced, sometimes referred to herein as PRIVATECHECK,
eliminates the security loopholes of paper checks, reduces the cost
of transactions (e.g. handling paper checks, credit card fees, and
the like), and protects the identity and sensitive information of
small businesses. It is based on point-to-point transactions where
verified payers and payees can make and receive payments to and
from each other, respectively, without revealing checking account
numbers, bank routing numbers, or other sensitive information
usually presented on paper checks and the like.
[0015] Each transaction, including details necessary to effect the
transaction (such as date and time, dollar amount, payer and payee
parties, and transaction memos or notes) is uniquely identified by
an identifier or code. Both parties can audit transactions for
accuracy, using only the provided code, without ever requiring the
underlying identity or bank information of the other party that
appears on paper checks.
[0016] The PRIVATECHECK service eliminates the risk of fraud and
identity theft of paper checks, reduces the cost of transactions
(e.g. check fraud), and reduces costs due to human error. Any
customer of a participating bank, financial institution or other
service provide, can sign up for the service. Once verified, each
customer receives a unique PRIVATECHECK identifier, which they use
for making and receiving payments without revealing their sensitive
banking information to payee parties. Each transaction is also
uniquely identified with, for example, a single-use alphanumeric
transaction code which can only be deposited by the intended payee,
and is therefore of no use even if intercepted. Deposits are made
by copy-and-paste of the transaction code by the payee, thus
eliminating the human error associated with re-typing handwritten
information from paper checks. Both parties can audit transactions
for accuracy, using only the transaction code, without ever
requiring the identity or bank information of the other party.
Completed transactions can also be downloaded directly into
standard accounting software such as QUICKEN or QUICKBOOKS.
[0017] The PRIVATECHECK service offers the following benefits: (i)
registered and verified customers are uniquely identified by a
PrivateCheck Customer Identifier, which can be designated for use
only to receive payments, and can therefore be printed publicly on
business cards or other publicly disseminated business information;
(2) payments are made simply by specifying the payee's PrivateCheck
Customer ID and the amount to pay, in response to which a unique,
single use transaction code is created; and (3) deposits are made
by entry of the transaction code and can only be deposited by the
payee, when properly logged-in to the PRIVATECHECK SERVICE. The
transaction code is tied to the intended payee in the records of
the PRIVATECHECK service, and so can not be used by unintended
parties, even if intercepted.
[0018] Turning now to FIGS. 1-5, therein are depicted exemplary
flowcharts of the processes performed by payers and payees of
financial transactions to accomplish a payment, and some exemplary
screen shots for entering the information required by such
processes. It should be readily apparent that such systems may be
implemented over any sort of computer or telecommunications network
that is suitable for accomplishing electronic communications and
financial transactions, such as the Internet, or any other type of
wired or wireless network as now known or hereafter developed. In
performing the processes 100, 200, it should be readily apparent
that the customers and any third party participants to the
processes may communicate using any of a wide variety of well known
computer systems that include processors, memory, inputs/outputs,
communications ports, and appropriate hardware and software, such
as operating instructions, applications, databases and processing
instructions for accomplishing the functions described herein.
Communications may in fact be accomplished by any electronic device
that is useful to communicate electronic data over a suitable
network, and may include cellular telephones, personal digital
assistants, and the like, as now known or hereinafter
developed.
[0019] With reference to FIG. 1, therein is depicted an exemplary
process 100 for registering with the PRIVATECHECK service and
initiating a payment transaction according to the present
disclosure. The process 100 commences when a customer registers
with a provider of the PRIVATECHECK service described herein (step
101). This may be accomplished by entering the information shown in
the exemplary customer registration screen 300 of FIG. 3. The
customer enters their name (e.g., business or personal name),
address (including postal and email addresses), business checking
account number/bank routing number and other necessary bank account
and personal/business information (such as taxpayer ID or social
security number). The customer also selects a password for
accessing and using the generated account.
[0020] Upon confirmation of the entered customer information (such
as by the well-known techniques of confirming through communication
via the customer's entered e-mail address and/or by independent
credit checks and the like), the provider of the PRIVATECHECK
service generates a unique identifier, such as a multi-digit
alphanumeric code (example: KD9NS78M), preferably, but not limited
to, a size of at least eight characters, which uniquely identifies
the business and their account (step 102), and which can not be
re-used to identify other customers. In various embodiments, the
customer identifier may be a universally unique identifier as
described in co-pending U.S. patent application Ser. No.
10/653,391, the entirety of which is incorporated herein by
reference. In such embodiments, or in varieties thereof, the
customer identifier may be generated by encoding customer
information or data associated with the registration of the
customer, according to any of a variety of well-known encoding
techniques now known or hereinafter developed. The code may be
guaranteed to be universally unique by encoding a unique property
of the customer registration information in the customer identifier
as described in the referenced application.
[0021] Returning to the process 100, the customer may then initiate
a payment transaction by first logging into a website of the
PRIVATECHECK service of the like, entering their customer
identifier and password (step 103), and selecting a "make payment"
(or similarly identified) function. The customer may then be
presented with an exemplary transaction initiation screen 400, as
depicted in FIG. 4.
[0022] Next, at step 104, the customer enters in similar
information that they would typically use for a paper check,
namely, a payee, a payment amount and notes or memoranda concerning
the payment, and may also select to automatically notify (by e-mail
or the like) the payee of the initiated transaction. It should be
noted that, unlike the information on a paper check, the payee
information will comprise a customer identifier of the payee, which
is the payee's unique alphanumeric identifier that may also
assigned to the payee in the manner described above with respect to
step 102.
[0023] Upon confirmation of the entered transaction information,
the customer selects a function by which the transaction is
authorized and executed, upon which a unique transaction
identification code is generated by the provider of the
PRIVATECHECK service (step 105). Namely, the PRIVATECHECK service
generates a unique (preferably, but not limited to, 12-20 digits)
alphanumeric transaction identification code (e.g.,
19WFJWA7J6LT5G71DF21), which uniquely identifies that particular
transaction and is tied only to the payee's customer identifier so
that other parties can not intercept and use the transaction code
for their own accounts. In various embodiments, the transaction
identifier may be a universally unique identifier (UUI) as
described in co-pending U.S. patent application Ser. No.
10/653,391, the entirety of which is incorporated herein by
reference. In such embodiments, or in varieties thereof, the
transaction identifier may be generated by encoding payer, payee,
or transaction information, according to any of a variety of
well-known encoding techniques now known or hereinafter developed.
The code may be guaranteed to be universally unique by encoding a
unique property of the transaction data, as described in the
referenced application, such as: date/time, payer/payee code,
transaction amount, memoranda or note information, Internet
Protocol (IP) address of the initiating party, session identifier
(ID) of the initiating party, and the like).
[0024] Next, at step 106, the customer communicates the transaction
identifier to the payee. In one embodiment, the customer may print
a check that includes the transaction identifier in place of
bank/routing number on an otherwise standard paper check. The
customer may have the PRIVATECHECK service automatically notify the
payee of the transaction identifier by e-mail or the like, or may
otherwise communicate the transaction identifier to the payee
themselves.
[0025] Finally, at step 107, the customer may download the
transaction data directly to their accounting software or enter the
same in any of a variety of useful and well-known manners, after
which the process 100 ends.
[0026] Turning now to FIG. 2, therein is depicted an exemplary
process 200 performed by a payee for entering a deposit via the
PRIVATECHECK SERVICE. The process 200 begins when a payee receives
a transaction identifier from a payer (step 201). The payer logs
into the PRIVATECHECK service using their customer identifier
(generated in the manner described for step 102 above) and password
(step 202), and selects a "deposit" (or similarly identified
function). The payee may then be presented with an exemplary
deposit screen 500, as depicted in FIG. 5. The payee needs only
enter therein the received transaction code (step 203), and if the
PRIVATECHECK service confirms that the transaction identifier
corresponds to the payee entering the same, the payee is asked to
verify the transaction information (such as payer, transaction
amount, memo, and the like) presented by the PRIVATECHECK service
form the records for the transaction. Next, at step 204, the payee
confirms the deposit, and downloads or otherwise enters the
completed transaction into their accounting software (step 205),
after which the process 200 ends.
[0027] The PRIVATECHECK service accomplishes actual payment by
processing a financial transfer of funds from the underlying actual
bank account of the payer to the actual underlying bank account of
the payee, as stored during the registration processes of both
parties. The funds transfer may be accomplished using well known
Automatic Clearing House (ACH) payment networks, or the like, as
now known or hereinafter developed.
[0028] For small business owners and accountants who write and
deposit numerous paper checks monthly, PRIVATECHECK is a secure,
electronic payment service that provides privacy, accuracy, and
time/cost savings that bank wires, credit cards, or check cards
cannot provide. PRIVATECHECK provides the complete digital
alternative to paper checks and fits within current small business
payment processes.
[0029] Providers of the PRIVATECHECK service, such as banks,
financial institutions, or other third parties, may offer free
"check replacement" to customers for a flat fee per transaction, in
order to encourage participation in the PRIVATECHECK service.
PRIVATECHECK may be an application service provider to banks who
pay licensing fees to be able to offer the PRIVATECHECK feature to
their customers. PRIVATECHECK may also charge a flat transaction
fee per transaction to the party making payment for the privacy
protection. The provider of the PRIVATECHECK service may earn
interest on the "float" of funds between the time payment is made
and the time that the payee makes the deposit and this withdraws
funds into their own bank account.
[0030] In sum, the PRIVATECHECK service described herein may
provide the following benefits: (1) privacy, in that neither party
to a transaction has to reveal their checking account number or
bank routing number to the other; (2) accuracy, in that the unique
customer identifiers eliminate many errors due to misspellings of
payee name and the like, because PRIVATECHECK double checks that
the payee entering in the transaction code is indeed the same as
the payee intended by the payer, and the transaction code may
incorporate this confirming information; (3) convenience, in that
it is easy to write the check by typing in information (same fields
of info as a regular check, except the payee field is filled in
with the 8-digit identifier of the payee instead of the name of the
business); (4) speedy deposit, in that there are no paper checks to
endorse and deposit physically at the bank; (5) cost effective, in
that a flat fee per transaction can be offered, there is no more
handling paper checks, and payees can make deposits by entering in
transaction code online in either case; and (5) data may be easily
downloaded into customer's existing accounting software from the
PRIVATECHECK service.
[0031] Although the best methodologies have been particularly
described in the foregoing disclosure, it is to be understood that
such descriptions have been provided for purposes of illustration
only, and that other variations both in form and in detail can be
made thereupon by those skilled in the art without departing from
the spirit and scope thereof, which is defined first and foremost
by the appended claims.
* * * * *